Facebook is a noose of American law. The federal and several state governments of the US have now put a formal lawsuit on the company for trying to prevent unfair competition in the market. It alleged that the company misused its dominance in the digital market. The lawsuit urged that Facebook and its other platforms – Instagram and WhatsApp – be separated. That means this company should be divided. The lawsuit is filed under US antitrust law.
Antitrust laws are intended to protect consumers from the exploitative behavior of companies. Their aim is to maintain healthy competition in the market. Under this law, there is a provision for action in cases of suspicious business activities of companies, disturbances in market allocation, rigging of tenders, rigging of price fixing and attempts to establish monopoly in the market. If the Facebook company loses in this lawsuit, then there will be a fundamental change in its appearance.
Facebook has become the second major digital company after the latest lawsuit, which the US federal and state governments have recently taken to court on charges of violating antitrust law. In October, the United States federal government and 11 states filed a similar lawsuit against Google. It is alleged on Google that it has tried to stop the competition in the matter of online search and search advertising. The first such case started in the 1990s against the Microsoft company, whose decision came early in this century. The Microsoft company was then divided into two parts by court order.
Currently, Facebook and Google are not the only targets of governments in America. According to media reports, US officials have recently investigated attempts by almost every major company in the IT sector to stop competition. Under this, the Apple company controls iOS app and Amazon company has investigated the wrong behavior from independent vendors.
According to law experts, in the case filed against Facebook, governments have to prove in court that the wrong conduct of this company had a bad effect on consumers or prevented competition in the market. Antitrust expert and economist Hale Singer told a TV channel – The loss of consumers is not seen only in terms of price. Rather, it also involves questions like violation of their privacy.
In the case filed, the prosecution has said that private social networking has become important in the lives of millions of Americans today. Facebook has tried to consolidate and continue its monopoly, which has not given consumers a competitive advantage. The motive of the lawsuit is to curb Facebook’s anti-competitive conduct and restore competition in the market, so that the trend of invention and free competition can flourish.
The charges against Facebook are mainly related to her buying Instagram and WhatsApp. Facebook bought Instagram in 2012 for a billion dollars. In 2014, he bought WhatsApp for $ 19 billion. Prosecutors say that the Facebook company has been using its dominance and monopoly over the market to crush smaller competitors and keep them out of the race. He has collected vast amounts of data and money. This poses a threat in the market.
Facebook has said that it has strong arguments to defend itself in this lawsuit. He has said that people and small businesses use Facebook’s free services and ads because Facebook’s apps and services provide them with maximum value. It is worth noting that today, more than three billion people are using Facebook’s various platforms and apps. This company has been in controversy in many countries due to its behavior. But now it seems that there is such a trap, which will not be easy to get out. The future of the company seems to be hanging in the balance at the moment.